Member Info for slowburner

Pen167 I agree with your view on potential 4 x factor EUS increase by end 2018. Not sure if you were at the strategy day but as previously stated Andy the Bango guy from Japan couldn’t contain himself when talking about the Amazon Japan progress and also we can expect further role out of DCB physical goods in Hong Kong, Taiwan, Singapore & South Korea with all potential markets being similar to Japan.

and we all know Mr Anderson ain't no Montgomery Bruster so if he's spending the companies cash we can be assured he will be spending it very very wisely indeed. Aa techy geek (no offence to Mr Anderson) and a bloody good one at that he was probably looking to do the processing of the data in house but obviously saw something he likes with a quicker route to market. Also point of note is that at the strategy day which was attended at a guess by at least double the attendance of last year including all the big institutional investors not once did anybody raise or question the placing SP

The fact that 45% of the acquisition value was to be paid in shares may also have something to do with the placing SP. Considering the Bango SP volatility Digitouch would be fools to accept shares with such risk. Also don't forget the 700k warrants they can take up @ 180p I suspect all involved have agreed to manipulated the situation / SP to allow the deal to go through and once done (Monday) we can all get back to normal Also worth noting that in November 2015 the market valued a ticket to ride on the Bango bus at 90p so @ 180p 2 years on and which we all know is well discounted is not a bad return

As Mr Trump would say the acquisition of Audiens is Bango being smart and should attract considerable new customers to use the Bango platform and therefore drive EUS through the platform which I think will far out way any revenue from marketing the data itself. Yes the placing price will leave a sour taste for some but I think this was all about speed to market and as for the 2 BoD taking part Its normal that the external investors chucking the big bucks in like to see members of BoD taking part even if it's a token gesture. I'm sure both BoD members who took part have various options to pick up shares far below the placing SP. It will be interesting to see how the market reacts over the next days as the analyst take stock of the strategy day and the acquisition and with the new shares being issued on Monday One other observation from yesterday was that the guy from Audiens appeared very positive looking forward and was of the opinion that the acquisition would catch Audiens competitors by surprise to a point that he stated he would have liked to see their faces when they woke up to the news yesterday morning Time will tell if this is good deal but looks a positive move to me

Simon I eventually made it to the strategy day and an interesting couple of hours. I suspect the handout presentation slides will be on the Bango wed page soon if not already although they don't tell the full story. Summary I take away is all looks well going forward and happy to hold Best moment was when our guy from Japan was talking about the Amazo deal and that by far it's the biggest DCB deal to date but could not contain himself with a smirk on his face. I don't think Amazon DCB activations (or maybe other deals for physical goods) for Hong Kong, South Korea, Singapore & Taiwan are that far away. In relation to the placing and M&A they forecast spending circ £2n on development & marketing over the next 12 - 24 months

Simon I'm hoping to get down there but need to attend a meeting in mid morning so all depends what time I can escape and if I have time to get across London

At least it looks like the highly paid management team had the decency to cancel the Christmas party and save cost's

Not dead yet

Pen167 Thanks for the link, I had read the article last year but had not listened to the interview and whilst the guy from MTN mentions both wallets and DCB the devil is in the detail and you are correct in that he only confirms working with Bango when talking about DCB. He also confirms MTN have allowed DCB to sit along side and have access to the wallet he does not confirm this is with Bango, in hindsight when you reflect on the announcement yesterday and look back at the MEF interview the writing was on the wall for all to see as to the next step ( wallets) we just had to look hard enough and listen carefully. Also it would appear wallets are more attractive than DCB although this is not to say DCB does not have its place at the table. Simon Agree with your summary of why no RNS and would say what a nice problem to have in that you have so many deals being inked that you can not issue RNS for each and everyone as you would overload the system. What other company do you know who can claim they have the same problem I'm more and more confident by the day that 2018 will finally be the transformational year for BANGO

I also meant to say that in addition to Ghana being a new territory its further validation that the Bango platform is being adopted by large telcos and Google using wallets

Pen167 I don't think the deal with MTN is a new deal as I read something about this last year ( I will try to find the article) so I doubt there will be a RNS in the morning although happy to be wrong. I think the reason for the announcement is that Ghana is a new territory and also to keep investors informed that everything is on track for the pipeline of activations required to keep doubling the EUS.

Nice start to the week

Pen167 Regarding ex growth I thought I would set out the last 4 half year EUS H1 2016 46m H2 2016 86m H1 2017. 92m H2 2017. 178m It would appear that H1 2017 didn't go to plan and therefore 2017 end user spend was a little down on expectations as the everybody was expecting a doubling to be the lower end although when you look at H1 they did well to acheive EUS 271m. Hopefully H1 2016 was a blip

If you asked me this time last year what my expectation would be for the year I would say overall a good performance although the exit EUS appears low on PI expectations based on the September annualized EUS but at the end of the day the results are in line with market expectations which in my opinion is what counts most. Whilst annualized EUS was useful in the early days maybe this is now a good reason to stop reporting annualised EUS which can be subject to both spikes and troughs and only provide actual EUS. I notice they have done this in the trading update for the first time so maybe this is what they will do going forward. Great news on the Netflix deal and hope for further role out in the coming months. Remember Bango have always stated from launch of a new billing route it takes 12-18 months to see full revenue realised

There is no date announced for the Trading Update (well not in public knowledge) 2017 Trading update was on 12th Jan 2016 Trading update was on 21st Jan although they gave an Update on End User Spend & Strategy Outlook on the 14th Jan Anyway, not long to wait and the pressure on the SP appears to be building

Pen167 Thanks for the explanation and if I understand correct wallets are only attractive to telcos if the operate the wallet in house therefore getting the revenue the same as DCB. However, if the wallet is operated by a third party such as google this would result in all revenue by passing the telco. However, for Bango they can deal with both models as they are only the payment processor and with their data gathering technology are also a valuable tool This also pushes Bango into the payment processing specialist category rather than DCB Specialist

Pen167 Thanks for the info. Do you know how the revenue stream works with wallets and is this the same as DCB. Also do Bango provide the wallet for free ?

I would summeriise 2017 as the year the Bango platform & business model was proven Now let 2018 be the year Bango realised it's potential

If you research the decline in SP from 2012/13 this was mainly related to the focused / planned change in business model away from premium messaging for content related to feature phones towards the big APP stores running on smart phones and the development / deployment of smart phones in emerging markets. What�s interesting now is the previous developed market which mainly used credit cards is now becoming the emerging market in relation to DCB due to the tech savy youth of today who don't see the point of getting a credit card when they can use their mobile bill for charging.

Monitized silly me